As more Americans age into eligibility for Medicare, for-profit Medicare Advantage health plans are growing their enrollment much quicker than their nonprofit counterparts, according to a new report from The Chartis Group, a healthcare advisory group.
When it comes to capturing market share, the report found for-profit health plans far surpass the reach of nonprofit plans.
The group shared several examples of for-profit health plan growth in 2021, including UnitedHealthcare, which plans to add 300 counties to its Medicare Advantage footprint. That marks a 16 percent increase for the company. Other national payers like Cigna and Anthem are expanding their market share for 2021 even more, by 22 percent and 20 percent, respectively.
The report said the growing gap between Medicare Advantage market share for for-profit health plans "will limit nonprofit plans' ability to compete for share in this segment and grow beyond the 7 million beneficiaries they collectively serve today." Without a change in strategy, nonprofit health plans risk losing out on an opportunity to gain market share in the Medicare Advantage business, the report said.
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